Metered Access

Crain's Detroit Business is a metered site. Print and digital subscribers have unlimited access to stories, but registered users are limited to eight stories every 30 days. After viewing three metered stories, you'll be asked to register or log in. After eight more stories in 30 days, you'll be asked to subscribe.

EQ to sell environmental company to US Ecology

After five years under Kinderhook Industries LLC, Wayne-based EQ – The Environmental Quality Co. is preparing for another sale. This time, however, EQ is selling to another environmental company.

Boise, Idaho-based US Ecology Inc. announced today that it has entered into an agreement to acquire EQ for about $465 million from New York City-based Kinderhook, a private equity fund with more than $770 million in working capital.

“When we accepted investment from Kinderhook back in 2008, the idea was to provide additional capital for growth,” said EQ CEO Dave Lusk. “We have more than doubled the size of the company and have been very successful.

“We always knew (Kinderhook) would buy, grow and sell (EQ). We accepted that sale was inevitable,” said Lusk, who plans to step down from EQ and join the US Ecology board after the sale is completed.

The transaction is expected to close in the second or third quarter. The final purchase price will be based on working capital, US Ecology said.

The addition of EQ will expand US Ecology’s geographic footprint and provide a greater array of services to better meet the needs of our customers,” US Ecology CEO Jeff Feeler said in a statement.

Kinderhook acquired EQ in November 2008 with a $100 million investment to capitalize the business for growth. EQ has since acquired six companies and increased services.

After its acquisition last year of Allstate Power Vac Inc., EQ generated pro forma revenue of about $376 million and adjusted pro forma earnings before interest, taxes, depreciation and amortization of about $54 million in 2013.

EQ employs 1,250 workers at 35 locations with more than 6,000 customers across the U.S. About half of those employees work in Southeast Michigan.